USD/JPY Outlook: consolidation below 100DMA likely to precede fresh push higher
|USD/JPY
The pair is taking a breather after steep six-day rally faced headwinds important barriers at 108.10/16 (falling 100DMA / Fibo 76.4% of 109.31/104.44).
Thursday’s action failed to close above these barriers and today’s fresh attempts higher were so far short-lived.
Near-term picture remains bullish and favors further upside after positive signals were generated on Thursday’s rally and close well above falling daily cloud as well as close above Fibonacci 100% expansion of wave C from 105.73 (30 Sep trough).
Consolidation scenario is also signaled by fading bullish momentum and stochastic reversing in overbought territory.
Dips should be ideally contained by daily cloud top (107.59) / broken Fibo 61.8% (107.45) before bulls resume, as the pair is on track for the third consecutive strong bullish weekly close that adds to positive outlook.
Caution of deeper pullback on break below 107.59/45 (daily cloud twists next week and could be magnetic) as well as positioning ahead of Fed that may delay bulls.
Converging 55/10DMA’s 107.22/09 mark next solid supports.
Res: 108.10; 108.25; 108.84; 109.00
Sup: 107.90; 107.59; 107.45; 106.88
Interested in USD/JPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.